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LequteMan
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The Central Bank of Nigeria has kept its benchmark interest rate on hold at 13 percent on Friday following its monetary policy committee's meeting.
Governor Godwin Emefiele said the bank's monetary policy committee voted 8-4 in favour of keeping the rate at its current level, one of the world's highest benchmark borrowing rates. Its last move was in November.
He says concerns about rising inflation and expected normalisation of U.S. interest rates meant monetary policy in Africa's biggest economy had to remain tight.
Emefiele also said the naira, which has lost around 15 percent against the dollar over the last year, with an official devaluation in November and a de facto one in February, was "appropriately priced" at its current level of 197.
The bank has curbed interbank access to hard currency over the last few months in a bid to keep the naira on an even keel, although the restrictions have angered investors and frustrated companies that need dollars for imports.
Emefiele rejected the idea of loosening the FX curbs, saying the central bank could not adopt an "indeterminate policy" of currency depreciation.
Source: Reuters
Governor Godwin Emefiele said the bank's monetary policy committee voted 8-4 in favour of keeping the rate at its current level, one of the world's highest benchmark borrowing rates. Its last move was in November.
He says concerns about rising inflation and expected normalisation of U.S. interest rates meant monetary policy in Africa's biggest economy had to remain tight.
Emefiele also said the naira, which has lost around 15 percent against the dollar over the last year, with an official devaluation in November and a de facto one in February, was "appropriately priced" at its current level of 197.
The bank has curbed interbank access to hard currency over the last few months in a bid to keep the naira on an even keel, although the restrictions have angered investors and frustrated companies that need dollars for imports.
Emefiele rejected the idea of loosening the FX curbs, saying the central bank could not adopt an "indeterminate policy" of currency depreciation.
Source: Reuters
